1, steel futures are futures with steel as the target, and steel futures are steel bar futures and steel wire futures. China is the largest producer and consumer of steel in the world. In 2004, China's steel output accounted for nearly 30% of the global output. It is estimated that the crude steel production capacity in China will reach 333 million tons in 2005, and the steel demand will reach 270 million tons. At the same time, China is still a big steel importer, importing 29.3 million tons of steel in 2004. As a big country in steel production, consumption and trade in the world, on February 28th, 2005, Baosteel was "forced" to accept the demand of the international mining giant for a sharp increase in iron ore prices, and the voice of the domestic industry to resume steel futures trading was also growing. How to become an international steel pricing center and safeguard China's economic interests has become the focus of more and more people's attention.
2. Combining the selection methods of steel futures at home and abroad and the actual situation of China's steel market, the selection of steel futures re-listed in China should follow the following basic principles: adhere to the design idea of large varieties, make steel futures difficult to be manipulated, maintain market stability, and make the generated prices truly reflect market supply and demand. It should have higher hedging efficiency and lower hedging cost. It is necessary to truly reflect the dynamic trend of the whole steel market and comprehensively reflect the steel industry structure and its changing trend. There should be enough liquidity to attract incremental funds. If the subject matter of steel futures flows slowly, then the trading of futures contracts will be abandoned and the existing conditions will be lost. There should be broad development prospects, otherwise it will lead to a short life cycle of steel futures, which is not conducive to the role of steel futures. It is best to connect with the international market, so as to reduce the risk of foreign trade, and on this basis, with the help of China's huge steel market, the international market will be influenced, and finally a steel futures market centered on China will be formed.